1. The accountant at EZ Toys, Inc. is analyzing the production and cost data for its Trucks Division. For October, the actual results and the master budget data are presented below.

Actual results			Budget data
10,000 trucks produced and sold			12,000 trucks planned
Unit selling price	$15		Unit selling price	$14
Variable costs:			Unit variable cost:
Direct materials	$52,800		Direct materials	$5
Direct labor	51,000		Direct labor	4
Variable overhead	23,000		Variable overhead	2
Total variable costs	$126,800		Total unit variable costs	$11
Fixed overhead	$9,000		Fixed overhead	$9,600

Calculate the actual, flexible budget and static budget income statements. Label the total variance due to cost control and due to activity/volume.